Sanjay G. Reddy's blog on economics and other subjects

The No and the Germans

It now seems clear the Greek referendum has returned a resounding No. This places the Germans and the other creditor countries in the Eurozone in a stark position. They can insist on the narrative that the Greeks have said no to Europe and the Euro, but this will be denied vociferously and plausibly by the Greeks themselves, who will insist on their intent to return to the negotiating table and to do so constructively. The Greek government can moreover plead that it has no alternative but to reject a deal that does not include meaningful debt relief, given the democratic direction they have received. They should paint the real choice as being between different conceptions of how Europe should be organized and for whom, rather than about the interests of Greece narrowly. Whether or not Greece is now forced to exit, that is the real choice for the Eurozone.